Inflation, barring a few niggly side effects, is politically superior. Deflationary collapse doesn't work well for the upper 1% or the banks, corporates, military industrial complex, big oil, or anyone else that matters.

Pool your investment funds in dollars and prepare for the next series of comex margin increases. Buy those dips, as they are temporary.

Of course, if you think the US will deflate it's rate of borrowing anytime soon, just hold the dollars. What they lack in stability, they make up for in liquidity.

But we're not talking regular 'ol inflation anymore. QEIII, IV, V, and so on are supposed to be pit stops on our trip to hyperinflation, right? Hyperinflation allows us simple-minded proles to get out of all debt for mere fractions of a penny on the dollar, thus releasing us from debt slavery and opening the gates of Paradise to us.

That is the politically unpalatable option, not deflation. It's not that deflation is welcome, but hyperinflation is unthinkable to TPTB. It means they die, too.

Seems to me that the TPTB believe they can navigate the fine line between high inflation and hyper-inflation. Deflation is fraught with to many unknowns if the little folk lose everything. People who have nothing left to lose tend to get uppity and turn on their overlords with pitchforks, torches and rope. Plenty of rope.

See that's the thing, if we wait until deflation takes a firm hold to start hanging these fuckers we'll be too late. How are you going to march on Wall St. and D.C. if you're starving and dealing with militarized police forces along the way? Short answer: you're not.

So we should sell our gold? Please tell. Some of us are not privy to millionaire advice.

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NO! do NOT ever.. or until its $10k an ounce sell your gold! and even then if you dont have to dont!

You should have a blended basket of things..

some gold.. 10% That never goes away unless and emergency and you can add too but always keep a lil bit "O" Gold!

some silver.. as froggy as you are feeling..within a split of 50% between silver and treasuries..

some treasuries! Canada v. the U.S. right now if you are looking for earnings.

Cash on hand should be 40% of what you have..

This is a safety basket.. if you had more money to play with you could set a different set of rules for yourself.

this is just advice on line.. you dont have to take it and always consult with your own finance people (in real life, in their office) before making any purchases!

Gold works whether the world changes or not.

Silver as well works whether the lights are on or off.

Treasuries as well are as safe as I can make you.

Having cash on hand to pick up deals for gold / silver and then sell them off.. short term buying to sell for modest gains.. consider making 10%.. or 5% even.. now consider making that 5% twice a month.. multiply that times 12 months and you can see that you have earned some money.. which you ca then add into your mix.

Stocks are hot air.

Bonds can go no higher or very little higher!

tangibles.. guns are a Great! Investment!! which the old timers in my family sold me on.. so you can add some quality fire arms into the mix as well as an investment that works in times of good and bad.

Ohbummer had his chance and blew it. There are more Americans than ever that have become disenfranchised because of Ohbummer's change that never happend, that is what people get for smoking hopium. So who is going to be the next great Presidential dissapointment?

He's lost the Black vote. They are staying home during the vote. Every one of them I personally know and have as friends call him a sellout Oreo. He's done worse than nothing for them as everything for them is worse now, not better.

after 30 years of filling blacks' heads en masse with complete bullshit as to their entitlements as a result of EXISTING, how could ANYONE fail to disappoint them?

Literally, the narrative is that they be's kings and queens n'shit. Any departure from the realization that Obama NOT goin be payin mah mortgage, Obama NOT goin be payin my gayus leads to severe disillusionment and the belief that they are being cheated again by whitey.

Thanks for the flat synopsis of "American History X", trav; you cover all the hate, ignorance, and defensive knee-jerking, etc... minus the ending, the truth, or the FUCKING POINT, excepting the one on your head of course.

He defeated most of his opposition on the way in, its smooth sailing through the 2012 election for him now. With the banks behind you polls dont matter. The repubs wont put out a strong candidate despite Obama's political woes. Think Kerry vs Bush, guy didnt stand a chance, and the dems couldnt come up with anyone stronger cause it wasnt worth their time. He's also got the full support of MSM and they've set up some of the dumbest people on earth as his only media opposition (faux news.) I watch politics like I watch sports, mindless entertainment at best, and the fix is usually in.

Only an asshole such as yourself would be confused over real money gold or worthless paper promises of bonds to redeem in worthless USD FRN's. Youre doing a terrible job MomoFader whoever is paying you for this crap has got to be PISSED!

QE is not a infinite panacea for ISM or stock prices. The next 12 months will prove that. QE3 and 4 will be a dud for the Dow. Youve had your double up , if youre still expecting nominal gains from here just due to money printing youre gonna be disappointed , election or not. ISM has topped. Its just Happy Days from here.

Everything paper will start to burn in the next 12 months , theres going to be a huge correction into 2015. You might yield 10% on a utility but youll lose double that at least on the underlying. The trash that Robo is long of will probably goto zero.

Physical FIAT and physical GOLD. Everything else is gambling.

(i realize thats a slightly contrarian strategy and fiat is paper but the goons running this show arent giving away the levers of power by hyperinflating it away , thats just a fact...)

Woohooo!!!! Never mind that the only buyers are the Chinese and Indians - who are only buying because they have massive inflation problems. And that both governments have started tightening monetary policy. Most of you morons don't even know what you are buying... Going long inflation in China and Indian while they are tightening monetary policy is just STUPID.

The Chinese and Indians view gold like the west views fiat currencies. It is a cultural thing. Unless you hedge with gold I would get that lawn mower of yours tuned up and prepare to commence the push.

Furthermore, there are plenty of other reasons gold is going up that have little to nothing to do with events in China and India.

Don't you know that you can stop a house flood by turning off the faucet? It doesn't matter where the water is coming from, turning off the tap will get rid of it. Just like tightening lending standards will stop inflation caused by the import of Western inflation.

"They are the population that doesn't matter to the value and scarcity."

For some reason when they buy it the item's scarcity and value remain the same or suppressed.. Hmmm.

I guess his assumption is that speculation is the only price built into this. "Once china and India curtail their inflation (which they won't), there will be nobody buying those commodities anymore. Therefore the price will crash."

Yeah ok. I guess lets go ahead and forget countries all over the world are diversifying their reserves.

Just wondering.. Where were you when we were buying gold at 400 and silver at 10? Granted, this was in '06 -07, or a couple of ZH servers ago. And, may i ask, what exactly is your motivation for your endless campaign against PM's?

I have been reading these same posts for five years on this site. If you are trying to "save" us by bashing PM's, you have been proven wrong over a five year time period.

We appreciate your caring, but it is not necessary to advise on something, and then expect to be taken seriously, when you have no time frame or perspective to back your argument.

I normally don't give advice, but here goes: Worry about yourself, don't worry about us. In the end it will be us that you turn to for survival, and you may not be met with open arms... Good Luck.

Did you forget the 800lb gorilla ? the Central Banks of the world are buyers as well. I told you to get out of your gold shorts 2 weeks ago. I think Gold going into short strokes and high volatility unlike past 6 months.

Also the Indian CB tightening is lagging the "actual" inflation rate. Don't know about China.

If PIIGS default and they along with dictators move towards Gold, more fireworks start.

Notice that the bank stocks are being hammered as 10 yr goes to 2 handle. This is killing killing interest earning assets and margins. These rates are doing favors to no one other than an out of control Treasury. It will slow down lending even more.

Look; it really doesn't matter what the Fed does except for the fact that every single fucking commentator is trying to play jewgames on its coattails.

ALL the people who want the Fed to back off are looking to short and get rich speculating. ALL the people who want the Fed to QEx are looking to margin long and get rich speculating.

There is not a goddamned person who voices an opinion who isn't talking his effing book. The REALITY is that the economy is saturated and there isn't much to do profitably at higher yields. Yields follow the natural evolution of what the economy can bear.

Does ANYONE really believe that you could turn a profit borrowing at 8% in the USA? With all the regulations and laws we have, with every square inch developed? This is like SimCity when you got the screen full; there's nothing left to DO in the game- growth stops. We are there. If there is no organic growth to be had in the economy, there is no way ANY coupon can be supported.

"Interest earning assets and margins," lol, a euphemism for speculators trying to get something for nothing.

Ok but OIL buys more of everything else too. So gold holders have made a net gain or at least kept pace while everyone is losing. Effectively, Peak Oil is rationing oil to the disadvantage of non gold-holders.

you might want to ponder why that is the case. You may discover it has something to do with the unprofitability of development of that land.

When you understand this concept, the mechanics of prevailing interest rates will become much clearer.

That is when you will start to see money and debt as instruments subject to supply and demand forces like all the rest.

Yields' being negative is simply another way to say that shit is now UNPROFITABLE. I'm surprised it never dawned on any of the commentators what the implications of their statements are.

The Fed cannot raise rates because there is NO DEMAND for credit at that price. There's hardly any demand at ZIRP.

The liquidity trap is discussed by some economists who throw their paper models and idiotic bullshit around without sticking their head out of their office to see what causes it. Economic saturation does, an aggregate zero yield climate. All the credit in the world even at 0% will not be borrowed if there is nothing to do that will earn a >0% yield.

Actually, a great majority of that land is in the Federal government domain, and thus cannot be developed. The next largest portion is owned by state governments, and has the same limitation to development. Also, you are confusing money as the root of economic activity when it is merely a medium of exchange. All economic activity is to increase utility, to do this we produce things, to better increase our utility we utilize the division of labor as well as the process of exchange. The only purpose of production is for consumption, and exchange increases the ability of use to increase our utility. Whether goods are exchanged through barter or through monetary means, you are always exchanging goods for goods. You do not work/produce for money, you work/produce for what money can be sold for. While credit and money help to increase the effectiveness of trade and investment, it is not a necessary component. And, as is the case throughout history, when a money dies, trade and investment don't cease, they just use a different medium of exchange than they had prior.

What people forget is that the policies of the last couple of years were always a massive gamble. The probability of success was always slim, and if it had been any other nation trying it, the markets would have laughed in their face (as happened with Greece, when their stimulus program that just caused imports to jump).

Fact is, QE2, 3, 4 whatever, it's just not working. Money is not going into NEW investments, merely causing the price of existing assets to rise. The debt crisis is not just the Treasury market, it's entitlements and these things are inflation adjusted, so we need real growth, not just nominal. The banks don't want to face these facts, or admit the country is in a debt trap. They want to revert to the old play book of negative real yields to transfer wealth from the middle classes to the banks, but there is no more wealth to transfer.

So, yes, basically it's all over bar the shouting, or should that be shooting?

Gold is going up because as global governments are becoming increasingly irresponsible, real interest rates are decreasing and the likelihood of future international trade being settled in gold only is increasing.

Gold would need to inflate to $42,400 an ounce to cover the current worlds fiat currencies. This assumes that all fiat currencies would be backed 100% by Gold with no cheating by printing more paper gold certificates than the physical Gold backing them(like that would ever happen).

Like your discussion until you say "entitlements". what? The debt crisis is caused by tax revenues being significantly less than expenses. That gap is currently $1.5 trillion.

SS and Medicare did not suddenly explode in the last decade. Defense, unemployment and the rich not paying taxes did.

"Defense" is a $1tillion expense. 10% unemployment is a lot of people not paying taxes. GE paying $0 in taxes matters. So does everyone in what used to be the top tax brackets no longer paying as high a percentage as they tip their waiter at the yacht club.

Lowering corporate taxes increases the number of jobs retained here rather than outsourced, providing the government with income taxes paid by employees. When American labor becomes more competitive globally, we will stop losing jobs to outsourcing. For our labor to be competitively priced, we need to reduce the burdens on our labor. Right now we treat people as tax donkeys, which means they need to take in more gross income to have the same standard of living. The solution is to default on our debt (lowering the cost of debt service), have a massive debt workout (more of same), and to eliminate government meddling which results in the mispricing of everything from interest rates to real estate.

I agree with what you said, but how does defaulting on our debt play out pragmatically? Do we just say, "welp thanks for the mula suckers?" to our international creditors?

Once we default do they stop shipping us goods? I just don't see how this will play out except through massive inflation to pay off our debt with debased money... which will essentially price Americans out of the international marketplace as well.

We've got to drastically cut spending, pay off foreign creditors, and then waterboard the Fed's Board of Governors.

I think what the man is saying by tying entitlements to "inflation adjusted" is that the allocation necessary to fund those things will continue to rise because the goods and services purchased by those entitlements, to make them effective, also rise. The entitlement line items in the budget are moving targets and the target is moving northeast up a chart along with inflation. No doubt, the tax shortfall has quickened this problem, but the entitlement problem would have eventually been here, 2008 or no 2008, it just arrived sooner because of poor central planning (redundant?)

Don't misunderstand me - I am not saying entitlements are evil or to blame, I am just pointing out the fact they are inflation adjusted, so the Fed targeting nominal growth, via negative real interest rates could actually make the problem far worse. The SSTF does not have enough inflation linked assets and the pv of the liabilities in these off balance sheet entities are far higher than the $14 trillion of bonds. It's the same in all nations in the West (though Norway has a higher proportion of other assets such as equity and property).

My overarching point is the long standing policy of fixing a banking crisis via negative real rates is an attempt to transfer the wealth of the middle classes to the banks. It's been done many times in many countries, but the problem is that I do not believe there is enough wealth in left. For most people, their two largest assets are their pension (private and public) and their home. The pension asset is supposed to be inflation adjusted, so where does the money come from? Holding rates too low for too long sets up the mother of all pension crises....

SS and Medicare did explode this decade, between Bush and the Boomers...

GE, and all corporations simply pass taxes through to consumers through what they charge for goods. A tax on you and me. Go ahead and lobby for some rate increase on Exxon... Just don't complain too loud when gas hits $5.

Nearly 50% of the US population pays nothing in Federal income tax, and a large percentage get paid back. The top 1% of wage earners pay nearly 40% of Federal taxes... Seems unfair... LOL!

My solution is to cut the federal budget back to year 2000 levels adjusted for inflation for every agency. Get rid of DHS. End the wars. The federal civilian payscale needs to come under instense review. I'm not talking about the low level workers making $50K. I'm talking about the leeches making $175K as "program analysts" who could get a job at McDonalds.

All the pumpers who predict "silver to 60 by next week" then always justify their case by "look at all the growing industrial demand." Also, they throw in "silver isn't mined except as a byproduct of base metal production."

Ergo, silver is clearly an industrial metal. That doesn't imply a low price; rhodium and other PGMs are primarily industrial and yet still precious in a price sense.

The problem with silver is that it isn't needed as money in a world where we have gold. ANY amount of gold works to support a monetary system. That being said, Silver is still a real asset (in contrast to fiat) so in a restructuring of the global economy, it should do well even with a substantial reduction in industrial demand. This relates to my previous statement that both optimists and pessimists are buying silver and someone is wrong.